[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis for the periods ended June 30, 2025 [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents IMAX Corporation's unaudited condensed consolidated financial statements and notes for periods ended June 30, 2025, and December 31, 2024 [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20as%20of%20June%2030%2C%202025%20and%20December%2031%2C%202024) This section details the company's financial position, including assets, liabilities, and equity, as of June 30, 2025 and December 31, 2024 | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :----------------------------------- | :----------------------------- | :------------------------------- | | Total Assets | $868,582 | $830,398 | | Total Liabilities | $463,509 | $452,183 | | Total Shareholders' Equity | $404,382 | $377,535 | - Total assets increased by **$38.2 million** from December 31, 2024, to June 30, 2025, primarily driven by increases in cash and cash equivalents, accounts receivable, and property, plant and equipment[13](index=13&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) This section presents the company's revenues, gross margin, and net income for the three and six months ended June 30, 2025 and 2024 | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Revenues | $91,684 | $88,961 | $178,351 | $168,084 | | Gross Margin | $53,602 | $43,927 | $106,778 | $90,816 | | Income from Operations| $14,346 | $2,872 | $31,080 | $14,939 | | Net Income | $12,235 | $5,073 | $20,385 | $10,493 | | Net Income Attributable to Common Shareholders | $11,255 | $3,583 | $13,582 | $6,857 | | Basic EPS | $0.21 | $0.07 | $0.25 | $0.13 | | Diluted EPS | $0.20 | $0.07 | $0.25 | $0.13 | - Revenues increased by 3% for the three months and 6% for the six months ended June 30, 2025, compared to the prior year periods. Gross margin saw significant increases of **22%** and **18%** for the three and six months, respectively[15](index=15&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) This section outlines the company's net income and other comprehensive income for the three and six months ended June 30, 2025 and 2024 | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Net Income | $12,235 | $5,073 | $20,385 | $10,493 | | Other Comprehensive Income (Loss), net of tax | $2,572 | $(784) | $3,299 | $(2,177) | | Comprehensive Income | $14,807 | $4,289 | $23,684 | $8,316 | | Comprehensive Income Attributable to Common Shareholders | $13,658 | $2,930 | $16,591 | $4,965 | - Other comprehensive income significantly improved, moving from a loss in 2024 to a gain in 2025 for both the three and six-month periods, primarily due to unrealized net gains from cash flow hedging instruments[18](index=18&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20six%20months%20ended%20June%2030%2C%202025%20and%202024) This section details the company's cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 | Metric (in thousands) | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | | Net Cash Provided by Operating Activities | $30,181 | $24,070 | | Net Cash Used in Investing Activities | $(22,048) | $(15,638) | | Net Cash Provided by Financing Activities | $480 | $6,609 | | Increase in Cash and Cash Equivalents | $8,659 | $15,352 | | Cash and Cash Equivalents, End of Period | $109,251 | $91,552 | - Net cash provided by operating activities increased by **$6.1 million**, while net cash used in investing activities increased by **$6.4 million**, primarily due to higher investments in equipment for joint revenue sharing arrangements[20](index=20&type=chunk)[295](index=295&type=chunk) [Condensed Consolidated Statements of Shareholders' Equity](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Shareholders'%20Equity%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) This section presents changes in the company's total shareholders' equity for the three and six months ended June 30, 2025 and 2024 | Metric (in thousands) | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Total Shareholders' Equity | $404,382 | $342,305 | $404,382 | $342,305 | | Capital Stock, end of period | $415,142 | $394,493 | $415,142 | $394,493 | | Accumulated Deficit, end of period | $(261,261) | $(293,889) | $(261,261) | $(293,889) | - Total shareholders' equity increased significantly from the prior year, driven by net income attributable to common shareholders and positive other comprehensive income[23](index=23&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [1. Basis of Presentation](index=11&type=section&id=1.%20Basis%20of%20Presentation) This note describes the accounting principles, consolidation policies, and judgments used in preparing the financial statements - IMAX Corporation prepares financial statements in accordance with U.S. GAAP and SEC rules, with interim results not necessarily indicative of full-year performance[24](index=24&type=chunk) - The Company consolidates five of its ten film production VIEs, where it is the primary beneficiary, and uses the equity method for the other five[27](index=27&type=chunk) **Total assets and liabilities of consolidated VIEs (in thousands):** | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total assets of consolidated VIEs | $1,787 | $1,459 | | Total liabilities of consolidated VIEs | $362 | $246 | [2. New Accounting Standards and Accounting Changes](index=13&type=section&id=2.%20New%20Accounting%20Standards%20and%20Accounting%20Changes) This note discusses recently issued accounting standards and their potential impact on the company's financial reporting - FASB ASU No. 2023-09, 'Improvements to Income Tax Disclosures,' effective for annual periods beginning after December 31, 2024, requires consistent categories and greater disaggregation of income tax information[33](index=33&type=chunk) - FASB ASU No. 2024-03, 'Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures,' effective for fiscal years beginning after December 15, 2026, expands disclosures about specific expense categories[34](index=34&type=chunk) [3. Receivables](index=13&type=section&id=3.%20Receivables) This note details the company's accounts receivable, credit risk management, and allowance for credit losses - The Company's ability to collect receivables depends on theater operators' viability, influenced by consumer behavior and economic conditions. Management mitigates credit risk through initial evaluations and regular monitoring[36](index=36&type=chunk)[37](index=37&type=chunk) **Allowance for Credit Losses Related to Accounts Receivable (in thousands):** | Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Beginning Balance | $13,174 | $15,956 | $13,278 | $15,977 | | Current Period Provision (Reversal), net | $172 | $78 | $335 | $71 | | Ending Balance | $13,274 | $15,826 | $13,274 | $15,826 | - Allowance for credit losses related to net investment in leases decreased by **$0.2 million** for both three and six months ended June 30, 2025, while financed sale receivables decreased by **$0.1 million** and **$0.3 million**, respectively[54](index=54&type=chunk) [4. Lease Arrangements](index=23&type=section&id=4.%20Lease%20Arrangements) This note describes the company's sales-type leases and joint revenue sharing arrangements, including expected lease payments - IMAX provides systems through sales-type leases and joint revenue sharing arrangements (JRSAs), with JRSAs typically involving rent based on contingent box office receipts[58](index=58&type=chunk)[59](index=59&type=chunk) **Expected Lease Payments for Sales-Type Leases (in thousands):** | Year | Amount | | :--- | :----- | | 2025 (six months remaining) | $1,619 | | 2026 | $3,258 | | 2027 | $3,163 | | 2028 | $3,017 | | 2029 | $3,017 | | Thereafter | $16,129 | | **Total** | **$30,203** | [5. Inventories](index=24&type=section&id=5.%20Inventories) This note provides a breakdown of inventory categories and discusses inventory write-downs for the reported periods **Inventories (in thousands):** | Category | June 30, 2025 | December 31, 2024 | | :--------- | :------------ | :---------------- | | Raw materials | $31,181 | $29,162 | | Work-in-process | $1,871 | $1,611 | | Finished goods | $3,647 | $2,067 | | **Total** | **$36,699** | **$32,840** | - Inventories increased by **$3.8 million** from December 31, 2024, to June 30, 2025. Write-downs of **$0.1 million** and **$0.2 million** were recorded for the three and six months ended June 30, 2025, respectively[63](index=63&type=chunk)[64](index=64&type=chunk) [6. Borrowings](index=24&type=section&id=6.%20Borrowings) This note details the company's revolving credit facility, convertible notes, and other borrowing arrangements [Revolving Credit Facility Borrowings, Net](index=24&type=section&id=Revolving%20Credit%20Facility%20Borrowings%2C%20Net) This section outlines the company's revolving credit facility, including outstanding borrowings and recent amendments **Revolving Credit Facility Borrowings, Net (in thousands):** | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Wells Fargo Credit Facility borrowings | $48,000 | $37,000 | | Unamortized debt issuance costs | $(453) | $(644) | | **Total** | **$47,547** | **$36,356** | - Borrowings under the Credit Facility increased to **$48.0 million** as of June 30, 2025, from **$37.0 million** at December 31, 2024, with an effective interest rate of **6.17%** for the three and six months ended June 30, 2025[69](index=69&type=chunk) - On July 14, 2025, the Company entered into a New Credit Agreement, increasing revolving borrowing capacity to **$375.0 million** and extending maturity to July 14, 2030[71](index=71&type=chunk)[73](index=73&type=chunk) [Convertible Notes and Other Borrowings, Net](index=28&type=section&id=Convertible%20Notes%20and%20Other%20Borrowings%2C%20Net) This section details the company's convertible senior notes and other long-term debt obligations **Convertible Notes and Other Borrowings, Net (in thousands):** | Metric | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Convertible Notes | $230,000 | $230,000 | | Unamortized discounts and debt issuance costs | $(1,112) | $(1,864) | | Federal Economic Development Loan, net | $1,586 | $1,765 | | **Total** | **$230,474** | **$229,901** | - The Company has **$230.0 million** of **0.500%** Convertible Senior Notes due April 1, 2026, recorded as a liability net of discounts and debt issuance costs[83](index=83&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk) [7. Commitments, Contingencies and Guarantees](index=29&type=section&id=7.%20Commitments%2C%20Contingencies%20and%20Guarantees) This note describes the company's legal proceedings, indemnifications, and other contractual commitments and contingencies - The Company is involved in ongoing legal proceedings, including an arbitration award against EML/E-City for **$11.3 million** plus daily interest, which it continues to pursue enforcement for[89](index=89&type=chunk) - The Company provides indemnifications to directors/officers and counterparties in various agreements, with maximum potential liability often limited to the system purchase price in lease/sale agreements[92](index=92&type=chunk)[93](index=93&type=chunk) [8. Condensed Consolidated Statements of Operations – Supplemental Information](index=31&type=section&id=8.%20Condensed%20Consolidated%20Statements%20of%20Operations%20%E2%80%93%20Supplemental%20Information) This note provides supplemental details on selling expenses, employee retention credits, and joint revenue sharing arrangement revenue **Selling Expenses (in thousands):** | Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Sales Commissions | $409 | $489 | $655 | $676 | | Marketing and Other | $4,156 | $4,841 | $6,977 | $8,022 | | **Total** | **$4,565** | **$5,330** | **$7,632** | **$8,698** | - The Company recognized **$3.8 million** in Employee Retention Credit (ERC) benefits for the three and six months ended June 30, 2025, reducing Selling, General and Administrative Expenses (**$2.5 million**) and Costs and Expenses Applicable to Revenues (**$1.3 million**)[100](index=100&type=chunk) - Revenue from Joint Revenue Sharing Arrangements (JRSAs) totaled **$18.7 million** and **$37.9 million** for the three and six months ended June 30, 2025, respectively, an increase from the prior year[102](index=102&type=chunk) [9. Condensed Consolidated Statements of Cash Flows – Supplemental Information](index=34&type=section&id=9.%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20%E2%80%93%20Supplemental%20Information) This note offers supplemental information on changes in operating assets and liabilities, and depreciation and amortization **Changes in Other Operating Assets and Liabilities (in thousands):** | Category | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------ | :--------------------------- | :--------------------------- | | Financing receivables | $(911) | $3,554 | | Accounts payable | $11,694 | $(6,233) | | Accrued and other liabilities | $(15,506) | $(11,523) | | **Total** | **$(4,300)** | **$(19,086)** | **Depreciation and Amortization (in thousands):** | Category | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------ | :--------------------------- | :--------------------------- | | Film assets | $9,529 | $13,867 | | Equipment supporting JRSAs | $11,378 | $11,495 | | Other intangible assets | $4,205 | $3,289 | | **Total** | **$30,809** | **$34,002** | [10. Income Taxes](index=35&type=section&id=10.%20Income%20Taxes) This note details the company's income tax expense, effective tax rates, and deferred tax assets and liabilities - For the three months ended June 30, 2025, the Company recorded an income tax expense of **$1.2 million** (effective tax rate of **8.9%**), compared to a tax benefit of **$4.0 million** in 2024[111](index=111&type=chunk) - For the six months ended June 30, 2025, income tax expense was **$8.5 million** (effective tax rate of **29.4%**), up from **$1.2 million** in 2024, reflecting an increase in valuation allowance and withholding taxes[112](index=112&type=chunk) - Net deferred income tax assets were **$13.6 million** as of June 30, 2025, and deferred tax liabilities were **$12.5 million**, primarily for foreign withholding taxes on non-repatriated earnings[114](index=114&type=chunk)[115](index=115&type=chunk) [11. Capital Stock and Reserves](index=36&type=section&id=11.%20Capital%20Stock%20and%20Reserves) This note discusses share-based compensation expense, share repurchase programs, and capital stock activity **Share-Based Compensation Expense (in thousands):** | Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Costs and expenses applicable to revenues | $305 | $247 | $596 | $475 | | Selling, general and administrative expenses | $6,862 | $6,506 | $11,582 | $10,843 | | Research and development | $190 | $110 | $384 | $221 | | **Total** | **$7,357** | **$6,863** | **$12,562** | **$11,539** | - The Board of Directors approved a **$100.0 million** increase and a one-year extension (through June 30, 2027) to the share repurchase program, bringing the total authorization to **$500.0 million**, with **$250.7 million** available as of June 30, 2025[127](index=127&type=chunk) - IMAX China repurchased **1,495,900** common shares for HKD **$11.3 million** (**$1.4 million**) during the three and six months ended June 30, 2025[131](index=131&type=chunk) [12. Revenue from Contracts with Customers](index=42&type=section&id=12.%20Revenue%20from%20Contracts%20with%20Customers) This note disaggregates total revenues by segment and discusses variable consideration and deferred revenue **Total Revenues by Segment (in thousands):** | Segment | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Content Solutions | $33,965 | $35,076 | $68,214 | $69,089 | | Technology Products and Services | $55,639 | $50,898 | $106,232 | $94,048 | | All Other | $2,080 | $2,987 | $3,905 | $4,947 | | **Total** | **$91,684** | **$88,961** | **$178,351** | **$168,084** | - Revenues from Technology Sales included variable consideration of **$3.1 million** and **$6.4 million** for the three and six months ended June 30, 2025, respectively, a decrease from the prior year[139](index=139&type=chunk) - Deferred revenue recognized from the December 31, 2024 balance was **$10.8 million** and **$19.8 million** for the three and six months ended June 30, 2025, respectively[143](index=143&type=chunk) [13. Segment Reporting](index=44&type=section&id=13.%20Segment%20Reporting) This note provides financial information by operating segment, including gross margin and revenues by geographic area **Gross Margin by Segment (in thousands):** | Segment | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Content Solutions | $22,431 | $16,138 | $45,985 | $38,237 | | Technology Products and Services | $30,178 | $25,783 | $59,264 | $49,367 | | All Other | $993 | $2,006 | $1,529 | $3,212 | | **Total** | **$53,602** | **$43,927** | **$106,778** | **$90,816** | **Revenues by Geographic Area (in thousands):** | Region | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :------------------------------------ | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | United States | $42,391 | $38,296 | $64,962 | $64,900 | | Greater China | $17,677 | $22,750 | $57,802 | $44,203 | | Western Europe | $14,112 | $10,508 | $21,665 | $24,699 | | Asia (excluding Greater China) | $9,312 | $9,587 | $18,603 | $18,713 | | Latin America | $2,150 | $2,258 | $4,107 | $3,718 | | Canada | $2,494 | $3,159 | $3,896 | $5,567 | | Rest of the World | $3,548 | $2,403 | $7,316 | $6,284 | | **Total** | **$91,684** | **$88,961** | **$178,351** | **$168,084** | [14. Employee's Pension and Postretirement Benefits](index=47&type=section&id=14.%20Employee's%20Pension%20and%20Postretirement%20Benefits) This note details the company's defined benefit pension plan and other postretirement benefit obligations - The Company has an unfunded defined benefit pension plan (SERP) for its CEO, Richard L. Gelfond, with a projected benefit obligation of **$19.4 million** as of June 30, 2025[155](index=155&type=chunk)[156](index=156&type=chunk) - The Executive Postretirement Benefit Plan and Canadian Employee Postretirement Plan had obligations of **$0.5 million** and **$0.8 million**, respectively, as of June 30, 2025[158](index=158&type=chunk)[159](index=159&type=chunk) - The Deferred Compensation Benefit Plan had a benefit obligation of **$4.3 million**, funded by a company-owned life insurance (COLI) asset with a fair value of **$3.7 million** as of June 30, 2025[161](index=161&type=chunk)[162](index=162&type=chunk) [15. Financial Instruments](index=48&type=section&id=15.%20Financial%20Instruments) This note describes the company's cash and cash equivalents, and its use of foreign currency forward contracts - Cash and cash equivalents totaled **$109.3 million** as of June 30, 2025, with **$100.9 million** held outside of Canada, including **$61.5 million** in the People's Republic of China[163](index=163&type=chunk) - The Company uses foreign currency forward contracts to manage foreign exchange rate risks, with a net unrealized gain of **$1.4 million** on outstanding contracts as of June 30, 2025[77](index=77&type=chunk)[168](index=168&type=chunk) **Fair Value of Derivatives in Foreign Exchange Contracts (in thousands):** | Balance Sheet Location | June 30, 2025 | December 31, 2024 | | :--------------------- | :------------ | :---------------- | | Other assets | $1,430 | $0 | | Accrued and other liabilities | $(27) | $(2,029) | | **Total** | **$1,403** | **$(2,029)** | [16. Non-Controlling Interests](index=49&type=section&id=16.%20Non-Controlling%20Interests) This note details the company's non-controlling interest in IMAX China and its impact on net income - The Company indirectly owned **71.72%** of IMAX China as of June 30, 2025. The non-controlling interest balance was **$84.0 million**[172](index=172&type=chunk) - Net income attributable to non-controlling interests in IMAX China was **$1.0 million** and **$6.8 million** for the three and six months ended June 30, 2025, respectively[172](index=172&type=chunk) [17. Restructuring and Other Charges](index=49&type=section&id=17.%20Restructuring%20and%20Other%20Charges) This note outlines the restructuring and other charges incurred due to operational efficiency initiatives and asset sales - The Company incurred **$0.8 million** in restructuring and other charges for the three and six months ended June 30, 2025, related to operational efficiency initiatives, including workforce optimization (**$0.5 million**) and non-recurring fees for a 2024 internal asset sale (**$0.3 million**)[173](index=173&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=52&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on IMAX Corporation's financial condition and operational results for the periods ended June 30, 2025 and 2024 [Overview](index=53&type=section&id=OVERVIEW) This section provides a general description of IMAX's business, global network, and recent box office performance - IMAX is a global technology platform for entertainment, offering immersive content experiences through proprietary software, auditorium architecture, and specialized equipment[181](index=181&type=chunk) - As of June 30, 2025, the IMAX network comprised **1,821** systems in **89** countries, including **1,750** commercial multiplexes, an increase from **1,780** systems in the prior year[183](index=183&type=chunk) - The Company achieved a record box office of **$579.2 million** in the first half of 2025, a **24%** increase year-over-year, driven by **54** new films and strong performance from 'Filmed for IMAX' releases[187](index=187&type=chunk) [Sources of Revenue](index=55&type=section&id=SOURCES%20OF%20REVENUE) This section details IMAX's revenue sources, including content solutions, technology products, and other services [Content Solutions](index=57&type=section&id=Content%20Solutions) This section describes revenue from film remastering, distribution, and other content experiences like music and gaming events - The Content Solutions segment generates revenue primarily from Film Remastering and distribution, receiving an average of **12.5%** of box office, with a lower percentage in Greater China due to tax[192](index=192&type=chunk)[193](index=193&type=chunk) - Local language films generated over **$222 million** in box office in the first six months of 2025, representing **38%** of global box office, highlighted by 'Ne Zha 2' becoming the highest-grossing IMAX release in China[195](index=195&type=chunk) **New Films and Other Content Released to Global Network:** | Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Hollywood film releases | 8 | 9 | 15 | 16 | | Local language film releases | 10 | 14 | 30 | 24 | | Other content experiences | 3 | 4 | 9 | 6 | | **Total** | **21** | **27** | **54** | **46** | [Film Remastering and Distribution](index=57&type=section&id=Film%20Remastering%20and%20Distribution) This section explains how IMAX enhances film quality and leverages the 'Filmed For IMAX' program for optimized content - IMAX Film Remastering digitally enhances image and sound quality for projection on IMAX screens, creating a unique IMAX version optimized for its proprietary systems[194](index=194&type=chunk) - The 'Filmed For IMAX' program enables filmmakers to optimize their creative vision for The IMAX Experience, resulting in higher market share for IMAX titles[195](index=195&type=chunk) [Other Content Solutions](index=60&type=section&id=Other%20Content%20Solutions) This section covers the distribution of large-format documentaries and expansion into new live IMAX events and experiences - The Company distributes large-format documentary feature films and is expanding into new IMAX events and experiences, including music, gaming, and sports, leveraging **266** connected locations for live events[202](index=202&type=chunk)[204](index=204&type=chunk) - Upcoming documentaries include 'The Lost Wolves of Yellowstone' (2025) and 'Stormbound,' 'Patrouille de France,' and 'The Elephant Odyssey' (2026)[202](index=202&type=chunk) [Technology Products and Services](index=62&type=section&id=Technology%20Products%20and%20Services) This section outlines revenue from IMAX System sales, leases, joint revenue sharing arrangements, and maintenance services - The Technology Products and Services segment earns revenue from the sale or lease of IMAX Systems and associated maintenance, with initial fees and ongoing consideration varying by arrangement[207](index=207&type=chunk)[208](index=208&type=chunk) - Joint Revenue Sharing Arrangements (JRSAs) are crucial for network expansion, allowing exhibitors to install IMAX Systems with lower upfront capital and providing recurring cash flows from box office receipts[216](index=216&type=chunk) - As of June 30, 2025, the Company had **899** locations under JRSAs in its global commercial multiplex network and **336** systems in backlog under JRSAs[216](index=216&type=chunk) [Sales and Sales-Type Lease Arrangements](index=62&type=section&id=Sales%20and%20Sales-Type%20Lease%20Arrangements) This section describes revenue recognition from initial fees, minimum payments, and contingent fees for system sales and leases - Revenue from sales and sales-type leases includes initial fees and the present value of future annual minimum payments and estimated contingent fees, recognized upon system installation[208](index=208&type=chunk) [Joint Revenue Sharing Arrangements](index=62&type=section&id=Joint%20Revenue%20Sharing%20Arrangements) This section explains traditional and hybrid joint revenue sharing arrangements and their role in network expansion - Traditional JRSAs involve the Company assuming equipment and installation costs, earning rent based on a percentage of contingent box office receipts[211](index=211&type=chunk) - Hybrid JRSAs require fixed upfront payments from customers (typically half of a sale transaction) and a percentage of contingent box office receipts (typically half of a traditional JRSA)[212](index=212&type=chunk) [IMAX Maintenance](index=64&type=section&id=IMAX%20Maintenance) This section details mandatory maintenance services and extended warranties provided to exhibitors for IMAX Systems - IMAX System arrangements include mandatory maintenance services and an extended warranty, with annual fees paid by exhibitors to ensure high quality standards[217](index=217&type=chunk) [All Other](index=64&type=section&id=All%20Other) This section covers the IMAX Enhanced program, delivering immersive experiences across streaming platforms and consumer devices - The 'All Other' segment includes the IMAX Enhanced program, which delivers The IMAX Experience across streaming platforms and consumer devices through real-time and on-demand content optimization, and device certification[218](index=218&type=chunk)[221](index=221&type=chunk) - As of June 30, 2025, over **15 million** IMAX Enhanced certified devices are in-market with partners like Sony Electronics, Hisense, TCL, LG, and Philips[221](index=221&type=chunk) [IMAX Network and Backlog](index=65&type=section&id=IMAX%20NETWORK%20AND%20BACKLOG) This section provides an overview of the global IMAX network, system backlog, and recent signings and installations [IMAX Network](index=65&type=section&id=IMAX%20Network) This section presents the number of IMAX systems by type and geographic location, along with market penetration **IMAX Network by Type and Geographic Location:** | Region | Commercial Multiplex (June 30, 2025) | Commercial Multiplex (June 30, 2024) | Total (June 30, 2025) | Total (June 30, 2024) | | :------------------------------------ | :----------------------------------- | :----------------------------------- | :-------------------- | :-------------------- | | United States | 375 | 364 | 403 | 392 | | Canada | 44 | 43 | 50 | 51 | | Greater China | 796 | 790 | 809 | 803 | | Asia (excluding Greater China) | 187 | 176 | 190 | 180 | | Western Europe | 142 | 129 | 153 | 141 | | Latin America | 62 | 61 | 70 | 69 | | Rest of the World | 144 | 142 | 146 | 144 | | **Total** | **1,750** | **1,705** | **1,821** | **1,780** | - The worldwide commercial multiplex addressable market is estimated at **3,619** locations, with IMAX having a **48%** penetration rate (**1,750** systems)[225](index=225&type=chunk) - **76%** of IMAX Systems in the global commercial multiplex network are located in international markets, which continue to drive the majority of revenues and GBO[225](index=225&type=chunk) [Backlog](index=67&type=section&id=Backlog) This section details the IMAX System backlog by arrangement type and geographic location, including new and upgraded systems **IMAX System Backlog by Arrangement Type and Geographic Location (June 30, 2025):** | Category | Traditional JRSA | Hybrid JRSA | Sales Arrangements | Total | | :-------------------- | :--------------- | :---------- | :----------------- | :---- | | Domestic Total | 119 | 2 | 10 | 131 | | International Total | 123 | 92 | 155 | 370 | | **Worldwide Total** | **242** | **94** | **165** | **501** | - The worldwide backlog of **501** systems includes **256** new IMAX Laser Systems and **145** upgrades to existing locations[233](index=233&type=chunk) - Approximately **74%** of IMAX System arrangements in backlog as of June 30, 2025, are scheduled for international markets[237](index=237&type=chunk) [Signings and Installations](index=69&type=section&id=Signings%20and%20Installations) This section reports on IMAX System signings and installations for the three and six months ended June 30, 2025 and 2024 **IMAX System Signings:** | Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Sales Arrangements | 15 | 25 | 34 | 30 | | Traditional JRSA | 13 | 62 | 89 | 65 | | **Total** | **28** | **87** | **123** | **95** | **IMAX System Installations:** | Category | 3 Months Ended June 30, 2025 | 3 Months Ended June 30, 2024 | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | :--------------------------- | :--------------------------- | | Sales Arrangements | 13 | 10 | 26 | 15 | | Hybrid JRSA | 0 | 0 | 0 | 1 | | Traditional JRSA | 23 | 14 | 31 | 23 | | **Total** | **36** | **24** | **57** | **39** | [Results of Operations](index=69&type=section&id=RESULTS%20OF%20OPERATIONS) This section provides a detailed analysis of the company's financial performance for the periods ended June 30, 2025 and 2024 [Results of Operations for the Three Months Ended June 30, 2025 and 2024](index=69&type=section&id=Results%20of%20Operations%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202025%20and%202024) This section analyzes the company's financial results, including net income, revenues, and expenses, for the three months ended June 30, 2025 and 2024 [Net Income and Adjusted Net Income Attributable to Common Shareholders](index=69&type=section&id=Net%20Income%20and%20Adjusted%20Net%20Income%20Attributable%20to%20Common%20Shareholders) This section presents net income and adjusted net income attributable to common shareholders for the three months ended June 30 **Net Income and Adjusted Net Income Attributable to Common Shareholders (3 Months Ended June 30):** | Metric (in thousands, except per share) | 2025 Net Income | 2025 Per Diluted Share | 2024 Net Income | 2024 Per Diluted Share | | :------------------------------------ | :-------------- | :--------------------- | :-------------- | :--------------------- | | Net income attributable to common shareholders | $11,255 | $0.20 | $3,583 | $0.07 | | Adjusted net income attributable to common shareholders | $14,607 | $0.26 | $9,746 | $0.18 | [Revenues and Gross Margin](index=70&type=section&id=Revenues%20and%20Gross%20Margin) This section details the company's revenues and gross margin by segment for the three months ended June 30, 2025 and 2024 - Revenues increased by **$2.7 million** (**3%**) and gross margin by **$9.7 million** (**22%**) for the three months ended June 30, 2025, driven by higher installations and stronger IMAX box office[246](index=246&type=chunk) **Revenue and Gross Margin by Segment (3 Months Ended June 30):** | Segment | 2025 Revenue | 2024 Revenue | 2025 Gross Margin | 2024 Gross Margin | 2025 Gross Margin % | 2024 Gross Margin % | | :------------------------------------ | :----------- | :----------- | :---------------- | :---------------- | :------------------ | :------------------ | | Content Solutions | $33,965 | $35,076 | $22,431 | $16,138 | 66% | 46% | | Technology Products and Services | $55,639 | $50,898 | $30,178 | $25,783 | 54% | 51% | | All Other | $2,080 | $2,987 | $993 | $2,006 | 48% | 67% | | **Total** | **$91,684** | **$88,961** | **$53,602** | **$43,927** | **58%** | **49%** | [Content Solutions](index=70&type=section&id=Content%20Solutions) This section analyzes Content Solutions revenue, gross margin, and IMAX box office performance for the three months ended June 30 - Content Solutions revenue decreased by **$1.1 million** (**3%**), but gross margin increased by **$6.3 million** (**39%**) for the three months ended June 30, 2025[249](index=249&type=chunk) - IMAX box office for the quarter totaled **$281.1 million**, a **41%** increase year-over-year, driven by Hollywood films like 'Mission: Impossible - The Final Reckoning' and 'Sinners'[250](index=250&type=chunk) - Gross margin percentage for Content Solutions increased to **66%** from **46%** in the prior year, reflecting higher box office and a lower mix of self-produced content[252](index=252&type=chunk) [Technology Products and Services](index=72&type=section&id=Technology%20Products%20and%20Services) This section analyzes Technology Products and Services revenue, gross margin, and system installations for the three months ended June 30 - Technology Products and Services revenue increased by **$4.7 million** (**9%**) and gross margin by **$4.4 million** (**17%**) for the three months ended June 30, 2025[254](index=254&type=chunk) - Rental revenues increased by **$5.1 million**, as IMAX GBO from JRSAs rose by **$24.1 million** to **$125.1 million** in Q2 2025[254](index=254&type=chunk) **IMAX Systems Installed and Revenue Recognized (3 Months Ended June 30):** | Category | 2025 Number of Systems | 2025 Revenue (in thousands) | 2024 Number of Systems | 2024 Revenue (in thousands) | | :-------------------- | :--------------------- | :-------------------------- | :--------------------- | :-------------------------- | | New IMAX Systems | 11 | $11,206 | 8 | $7,649 | | Upgraded IMAX Systems | 2 | $1,878 | 2 | $2,926 | | **Total** | **13** | **$13,084** | **10** | **$10,575** | [All Other](index=72&type=section&id=All%20Other) This section analyzes the revenue and gross margin performance of the 'All Other' segment for the three months ended June 30 - All Other revenue and gross margin decreased by **$0.9 million** and **$1.0 million**, respectively, for the three months ended June 30, 2025, primarily reflecting results from Streaming and Consumer Technology[256](index=256&type=chunk) [Selling, General and Administrative Expenses](index=72&type=section&id=Selling%20General%20and%20Administrative%20Expenses) This section details selling, general and administrative expenses, including share-based compensation, for the three months ended June 30 **Selling, General and Administrative Expenses (3 Months Ended June 30):** | Metric (in thousands) | 2025 | 2024 | Variance ($) | Variance (%) | | :------------------------------------ | :--- | :--- | :----------- | :----------- | | Total SG&A Expenses | $35,302 | $37,564 | $(2,262) | (6%) | | Less: Share-based compensation | $(6,862) | $(6,506) | $(356) | (5%) | | **Total Adjusted SG&A Expenses** | **$28,440** | **$31,058** | **$(2,618)** | **(8%)** | - Lower SG&A expenses reflect management's focus on operational efficiencies and workforce reductions, partially offset by higher annual incentive compensation costs[258](index=258&type=chunk) [Research and Development](index=73&type=section&id=Research%20and%20Development) This section analyzes research and development expenses, highlighting factors contributing to changes for the three months ended June 30 - Research and Development expenses decreased to **$1.5 million** from **$2.0 million** year-over-year, primarily due to the capitalization of film camera costs in 2024[259](index=259&type=chunk) [Credit Loss (Reversal) Expense, Net](index=73&type=section&id=Credit%20Loss%20(Reversal)%20Expense%2C%20Net) This section discusses the credit loss reversal or expense, net, reflecting collection performance for the three months ended June 30 - The Company recorded a credit loss reversal of **$0.2 million** for the three months ended June 30, 2025, compared to an expense of **$0.1 million** in the prior year, due to improved collections from stronger box office performance[260](index=260&type=chunk)[261](index=261&type=chunk) [Interest Expense and Interest Income](index=73&type=section&id=Interest%20Expense%20and%20Interest%20Income) This section details interest expense and interest income, including factors influencing changes for the three months ended June 30 - Interest expense decreased by **$0.4 million** (**16%**) to **$1.9 million**, primarily due to lower borrowings under the Credit Facility. Interest income increased to **$1.1 million** from **$0.6 million**[263](index=263&type=chunk) [Income Taxes](index=73&type=section&id=Income%20Taxes) This section analyzes income tax expense and effective tax rates for the three months ended June 30, including significant tax benefits - Income tax expense was **$1.2 million** (**8.9%** effective rate) for the three months ended June 30, 2025, compared to a **$4.0 million** tax benefit in 2024, which included a **$7.7 million** net tax benefit from an internal asset sale[264](index=264&type=chunk)[265](index=265&type=chunk) [Non-Controlling Interests](index=74&type=section&id=Non-Controlling%20Interests) This section discusses net income attributable to non-controlling interests, primarily from IMAX China, for the three months ended June 30 - Net income attributable to non-controlling interests decreased by **$0.5 million** to **$1.0 million**, primarily due to lower revenues from sales arrangements and renewals in Greater China[266](index=266&type=chunk) [Restructuring and Other Charges](index=74&type=section&id=Restructuring%20and%20Other%20Charges) This section details restructuring and other charges related to organizational optimization and non-recurring fees for the three months ended June 30 - Restructuring and other charges totaled **$0.8 million** for the three months ended June 30, 2025, related to organizational optimization and non-recurring fees from a 2024 internal asset sale[267](index=267&type=chunk) [Results of Operations for the Six Months Ended June 30, 2025 and 2024](index=74&type=section&id=Results%20of%20Operations%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) This section analyzes the company's financial results, including net income, revenues, and expenses, for the six months ended June 30, 2025 and 2024 [Net Income and Adjusted Net Income Attributable to Common Shareholders](index=74&type=section&id=Net%20Income%20and%20Adjusted%20Net%20Income%20Attributable%20to%20Common%20Shareholders) This section presents net income and adjusted net income attributable to common shareholders for the six months ended June 30 **Net Income and Adjusted Net Income Attributable to Common Shareholders (6 Months Ended June 30):** | Metric (in thousands, except per share) | 2025 Net Income | 2025 Per Diluted Share | 2024 Net Income | 2024 Per Diluted Share | | :------------------------------------ | :-------------- | :--------------------- | :-------------- | :--------------------- | | Net income attributable to common shareholders | $13,582 | $0.25 | $6,857 | $0.13 | | Adjusted net income attributable to common shareholders | $21,785 | $0.40 | $17,688 | $0.33 | [Revenues and Gross Margin](index=74&type=section&id=Revenues%20and%20Gross%20Margin) This section details the company's revenues and gross margin by segment for the six months ended June 30, 2025 and 2024 - Revenues increased by **$10.3 million** (**6%**) and gross margin by **$16.0 million** (**18%**) for the six months ended June 30, 2025, driven by higher installations and strong box office performance during Chinese New Year and summer Hollywood releases[269](index=269&type=chunk) **Revenue and Gross Margin by Segment (6 Months Ended June 30):** | Segment | 2025 Revenue | 2024 Revenue | 2025 Gross Margin | 2024 Gross Margin | 2025 Gross Margin % | 2024 Gross Margin % | | :------------------------------------ | :----------- | :----------- | :---------------- | :---------------- | :------------------ | :------------------ | | Content Solutions | $68,214 | $69,089 | $45,985 | $38,237 | 67% | 55% | | Technology Products and Services | $106,232 | $94,048 | $59,264 | $49,367 | 56% | 52% | | All Other | $3,905 | $4,947 | $1,529 | $3,212 | 39% | 65% | | **Total** | **$178,351** | **$168,084** | **$106,778** | **$90,816** | **60%** | **54%** | [Content Solutions](index=74&type=section&id=Content%20Solutions) This section analyzes Content Solutions revenue, gross margin, and IMAX box office performance for the six months ended June 30 - Content Solutions revenue decreased by **$0.9 million** (**1%**), but gross margin increased by **$7.7 million** (**20%**) for the six months ended June 30, 2025[273](index=273&type=chunk) - IMAX box office for the period totaled **$579.2 million**, a **24%** increase year-over-year, driven by local language films, particularly 'Ne Zha 2' (**$166 million**) in China[274](index=274&type=chunk) - Gross margin percentage for Content Solutions increased to **67%** from **55%** in the prior year, reflecting higher box office and a lower mix of self-produced content[276](index=276&type=chunk) [Technology Products and Services](index=76&type=section&id=Technology%20Products%20and%20Services) This section analyzes Technology Products and Services revenue, gross margin, and system installations for the six months ended June 30 - Technology Products and Services revenue increased by **$12.2 million** (**13%**) and gross margin by **$9.9 million** (**20%**) for the six months ended June 30, 2025[279](index=279&type=chunk) - Rental revenues increased by **$5.2 million**, driven by IMAX GBO from JRSAs rising by **$38.8 million** to **$265.2 million**[280](index=280&type=chunk) **IMAX Systems Installed and Revenue Recognized (6 Months Ended June 30):** | Category | 2025 Number of Systems | 2025 Revenue (in thousands) | 2024 Number of Systems | 2024 Revenue (in thousands) | | :-------------------- | :--------------------- | :-------------------------- | :--------------------- | :-------------------------- | | New IMAX Systems | 23 | $20,330 | 13 | $11,511 | | Upgraded IMAX Systems | 3 | $3,338 | 3 | $4,303 | | **Total** | **26** | **$23,668** | **16** | **$15,814** | [All Other](index=78&type=section&id=All%20Other) This section analyzes the revenue and gross margin performance of the 'All Other' segment for the six months ended June 30 - All Other revenue and gross margin decreased by **$1.0 million** and **$1.7 million**, respectively, for the six months ended June 30, 2025, primarily reflecting results from Streaming and Consumer Technology[282](index=282&type=chunk) [Selling, General and Administrative Expenses](index=78&type=section&id=Selling%20General%20and%20Administrative%20Expenses) This section details selling, general and administrative expenses, including share-based compensation, for the six months ended June 30 **Selling, General and Administrative Expenses (6 Months Ended June 30):** | Metric (in thousands) | 2025 | 2024 | Variance ($) | Variance (%) | | :------------------------------------ | :--- | :--- | :----------- | :----------- | | Total SG&A Expenses | $68,764 | $68,821 | $(57) | (0%) | | Less: Share-based compensation | $(11,582) | $(10,843) | $(739) | (7%) | | **Total Adjusted SG&A Expenses** | **$57,182** | **$57,978** | **$(796)** | **(1%)** | - SG&A expenses remained relatively flat year-over-year, reflecting operational efficiencies and workforce reductions, partially offset by higher annual incentive compensation costs[284](index=284&type=chunk) [Research and Development](index=78&type=section&id=Research%20and%20Development) This section analyzes research and development expenses, highlighting factors contributing to changes for the six months ended June 30 - Research and Development expenses decreased by **$1.4 million** (**32%**) to **$2.9 million**, primarily due to the capitalization of film camera costs in 2024[285](index=285&type=chunk) [Credit Loss (Reversal) Expense, Net](index=78&type=section&id=Credit%20Loss%20(Reversal)%20Expense%2C%20Net) This section discusses the credit loss reversal or expense, net, reflecting collection performance for the six months ended June 30 - The Company recorded a credit loss reversal of **$0.3 million** for the six months ended June 30, 2025, compared to an expense of **$0.2 million** in the prior year, due to improved collections from stronger box office performance[286](index=286&type=chunk)[287](index=287&type=chunk) [Interest Expense and Interest Income](index=80&type=section&id=Interest%20Expense%20and%20Interest%20Income) This section details interest expense and interest income, including factors influencing changes for the six months ended June 30 - Interest expense decreased by **$0.5 million** (**12%**) to **$3.7 million**, primarily due to lower borrowings under the Credit Facility. Interest income increased to **$1.7 million** from **$1.1 million**[290](index=290&type=chunk) [Income Taxes](index=80&type=section&id=Income%20Taxes) This section analyzes income tax expense and effective tax rates for the six months ended June 30, including significant tax benefits - Income tax expense was **$8.5 million** (**29.4%** effective rate) for the six months ended June 30, 2025, compared to **$1.2 million** in 2024, reflecting an increase in valuation allowance and withholding taxes[291](index=291&type=chunk) [Non-Controlling Interests](index=80&type=section&id=Non-Controlling%20Interests) This section discusses net income attributable to non-controlling interests, primarily from IMAX China, for the six months ended June 30 - Net income attributable to non-controlling interests increased by **$3.2 million** to **$6.8 million**, reflecting a higher level of IMAX box office earned in Greater China[292](index=292&type=chunk) [Restructuring and Other Charges](index=80&type=section&id=Restructuring%20and%20Other%20Charges) This section details restructuring and other charges related to organizational optimization and non-recurring fees for the six months ended June 30 - Restructuring and other charges totaled **$0.8 million** for the six months ended June 30, 2025, related to organizational optimization and non-recurring fees from a 2024 internal asset sale[293](index=293&type=chunk) [Cash Flows for the Six Months Ended June 30, 2025 and 2024](index=80&type=section&id=CASH%20FLOWS%20FOR%20THE%20SIX%20MONTHS%20ENDED%20JUNE%2030%2C%202025%20AND%202024) This section analyzes the company's cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 **Cash Flows (in thousands):** | Activity | 6 Months Ended June 30, 2025 | 6 Months Ended June 30, 2024 | | :-------------------- | :--------------------------- | :--------------------------- | | Operating activities | $30,181 | $24,070 | | Investing activities | $(22,048) | $(15,638) | | Financing activities | $480 | $6,609 | | Effect of exchange rate changes on cash | $46 | $311 | | **Net change in cash** | **$8,659** | **$15,352** | - Net cash provided by operating activities increased by **$6.1 million**, primarily due to higher net income, partially offset by decreased cash from working capital expenditures[295](index=295&type=chunk) - Net cash used in investing activities increased by **$6.4 million**, mainly due to increased investment in equipment for JRSAs and capital expenditures[295](index=295&type=chunk) [Liquidity and Capital Resources](index=82&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section discusses the company's principal liquidity sources and its ability to fund anticipated operating and capital requirements - As of June 30, 2025, principal liquidity sources included **$109.3 million** in cash and cash equivalents, anticipated collection of receivables, and available borrowing capacity of **$252.0 million** under the Credit Agreement, **$26.5 million** under the Bank of China Facility, and **$27.9 million** under the HSBC China Facility[297](index=297&type=chunk)[298](index=298&type=chunk) - The Company expects to have sufficient capital and liquidity to fund anticipated operating needs and capital requirements for the next twelve months[301](index=301&type=chunk) [Off-Balance Sheet Arrangements](index=82&type=section&id=OFF-BALANCE%20SHEET%20ARRANGEMENTS) This section confirms the absence of material off-balance sheet arrangements impacting the company's financial condition - There are no off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on the Company's financial condition[302](index=302&type=chunk) [Critical Accounting Estimates](index=82&type=section&id=CRITICAL%20ACCOUNTING%20ESTIMATES) This section highlights the significant judgments, assumptions, and estimates made in preparing the financial statements - The preparation of financial statements requires management to make judgments, assumptions, and estimates that affect reported amounts, which are based on historical experience and future expectations[303](index=303&type=chunk) [Recently Issued Accounting Standards](index=83&type=section&id=RECENTLY%20ISSUED%20ACCOUNTING%20STANDARDS) This section refers to Note 2 for a discussion of recently issued accounting standards and their potential impact - Refer to Note 2 of the Condensed Consolidated Financial Statements for a discussion of recently issued accounting standards and their impact[305](index=305&type=chunk) [Non-GAAP Financial Measures](index=83&type=section&id=NON-GAAP%20FINANCIAL%20MEASURES) This section presents non-GAAP financial measures to provide supplemental insights into operating trends and performance - The Company presents non-GAAP financial measures, including Adjusted net income attributable to common shareholders, EBITDA, Adjusted EBITDA per Credit Facility, and Adjusted Selling, general and administrative expenses, to provide supplemental insights into operating trends and performance[306](index=306&type=chunk)[310](index=310&type=chunk)[313](index=313&type=chunk)[314](index=314&type=chunk) **Adjusted EBITDA per Credit Facility (in thousands):** | Metric | 3 Months Ended June 30, 2025 | 12 Months Ended June 30, 2025 | | :------------------------------------ | :--------------------------- | :---------------------------- | | Reported net income | $12,235 | $42,594 | | EBITDA | $30,142 | $122,069 | | Share-based and other non-cash compensation | $7,492 | $24,222 | | Restructuring and other charges | $786 | $4,592 | | **Adjusted EBITDA per Credit Facility - attributable to common shareholders** | **$36,686** | **$134,513** | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=87&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) This section details the company's exposure to market risks, including foreign currency and interest rate fluctuations, and its management strategies [Foreign Exchange Rate Risk](index=87&type=section&id=Foreign%20Exchange%20Rate%20Risk) This section discusses the company's exposure to foreign currency risk and its use of forward contracts as cash flow hedges - The Company is exposed to foreign currency risk as a majority of revenue is in U.S. Dollars, while significant costs are in Canadian Dollars, and box office receipts are generated in **89** countries[322](index=322&type=chunk) - Foreign currency net gain of **$0.2 million** and net loss of **$0.2 million** were recorded for the three and six months ended June 30, 2025, respectively[325](index=325&type=chunk) - The Company uses foreign currency forward contracts as cash flow hedges, with a notional value of **$51.3 million** as of June 30, 2025, to manage volatility[326](index=326&type=chunk)[327](index=327&type=chunk) [Interest Rate Risk Management](index=88&type=section&id=Interest%20Rate%20Risk%20Management) This section explains how changes in interest rates affect the company's earnings and its management of variable-rate debt - The Company's earnings are affected by changes in interest rates on cash and variable-rate borrowings under its Credit Facility[330](index=330&type=chunk) - Variable rate debt instruments represented **10%** of total liabilities as of June 30, 2025. A hypothetical **10%** increase in interest rates would increase interest expense by **$0.3 million** and interest income by **$0.3 million**[332](index=332&type=chunk) [Item 4. Controls and Procedures](index=88&type=section&id=Item%204.%20Controls%20and%20Procedures) This section confirms the effectiveness of disclosure controls and procedures and reports no material changes in internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=88&type=section&id=EVALUATION%20OF%20DISCLOSURE%20CONTROLS%20AND%20PROCEDURES) This section confirms the effectiveness of the company's disclosure controls and procedures as of June 30, 2025 - The Company's management, including the CEO and CFO, concluded that disclosure controls and procedures were effective as of June 30, 2025[334](index=334&type=chunk)[335](index=335&type=chunk) [Changes in Internal Control Over Financial Reporting](index=89&type=section&id=CHANGES%20IN%20INTERNAL%20CONTROL%20OVER%20FINANCIAL%20REPORTING) This section states no material changes occurred in internal control over financial reporting during the three months ended June 30, 2025 - There were no changes in the Company's internal control over financial reporting during the three months ended June 30, 2025, that materially affected or are reasonably likely to materially affect it[336](index=336&type=chunk) [PART II. OTHER INFORMATION](index=90&type=section&id=PART%20II.%20OTHER%20INFORMATION) This section provides additional information on legal proceedings, risk factors, equity sales, and other disclosures [Item 1. Legal Proceedings](index=90&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 7 of the financial statements for detailed information regarding ongoing legal proceedings - Information regarding legal proceedings is detailed in Note 7 of the Notes to Condensed Consolidated Financial Statements[338](index=338&type=chunk) [Item 1A. Risk Factors](index=90&type=section&id=Item%201A.%20Risk%20Factors) This section updates risk factors, emphasizing potential adverse effects of tariffs, trade barriers, and retaliatory government countermeasures - The Company's business may be materially adversely affected by the imposition of tariffs and other trade barriers and retaliatory countermeasures by the U.S. and other governments[340](index=340&type=chunk) - Uncertainty about global trade relationships may increase market volatility, currency exchange rate fluctuations, and economic instability, potentially impacting consumer discretionary income and box office receipts[341](index=341&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=90&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details the company's share repurchase program, including increased authorization and activity by IMAX Corporation and IMAX China - The Board of Directors approved a **$100.0 million** increase and a one-year extension (through June 30, 2027) to the share repurchase program, bringing the total authorization to **$500.0 million**, with **$250.7 million** available as of June 30, 2025[343](index=343&type=chunk) - IMAX Corporation did not repurchase any common shares under its program during the three months ended June 30, 2025[344](index=344&type=chunk) - IMAX China repurchased **1,495,900** shares during the three months ended June 30, 2025, under a renewed general mandate from its shareholders[346](index=346&type=chunk) [Item 5. Other Information](index=92&type=section&id=Item%205.%20Other%20Information) This section discloses a Rule 10b5-1 trading arrangement by the Chief Legal Officer for the sale of common shares and stock options - Robert D. Lister, Chief Legal Officer, entered into a Rule 10b5-1 trading arrangement on June 11, 2025, for the sale of up to **70,143** common shares, including **50,143** stock options expiring in March 2026[347](index=347&type=chunk) [Item 6. Exhibits](index=93&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including employment agreements, certifications, and XBRL documents - The exhibits include employment agreements for key executives, certifications pursuant to the Sarbanes-Oxley Act, and Inline XBRL documents[349](index=349&type=chunk) [Signatures](index=94&type=section&id=Signatures) This section contains the signatures of the Chief Financial Officer and Senior Vice-President, Finance & Controller, certifying the report - The report is signed by Natasha Fernandes, Chief Financial Officer & Executive Vice President, and Jose Zlatar, Senior Vice-President, Finance & Controller, on July 24, 2025[354](index=354&type=chunk)

Financial Performance & Guidance - IMAX reported a 24% year-over-year growth in global box office, reaching $579 million in the first half of 2025[87] - The company's total adjusted EBITDA margin was 426% in the first half of 2025[87] - IMAX projects full-year 2025 box office to exceed $12 billion[31] - The company anticipates installing 150-160 systems in 2025, an increase from the initial guidance of 145-160[31] - IMAX expects a total adjusted EBITDA margin in the low 40s for 2025[31] Network Growth & Expansion - The IMAX commercial network has a footprint of 1,750 systems across 89 countries and territories[11] - The company has a significant backlog of 501 IMAX systems[11] - International expansion, excluding Greater China, has seen over 28% network growth since 2019[14] Content & Programming - IMAX anticipates a record of over 14 Filmed for IMAX titles in 2025[11] - Local language content is growing, with over 60 titles expected in 2025[77] - First half 2025 IMAX local language box office is already over 50% higher than FY 2024[73] Capital Allocation - IMAX has repurchased 19% of its outstanding shares since 2020[11] - The company's share repurchase authorization was increased in June 2025, with $251 million available under the program[108]

Executive Summary & Highlights [CEO Commentary](index=1&type=section&id=CEO%20Commentary) IMAX's Q2 results were outstanding, driven by strong network growth, record North American box office, and significant market share gains, with a projected record $1.2 billion global box office in 2025 - IMAX delivered **outstanding financial results in Q2**, driven by strong network growth, record North American box office, and impressive market share gains from more 'Filmed for IMAX' releases[3](index=3&type=chunk) - Strong network growth with **57 IMAX locations opened worldwide** and system sales pacing well ahead of 2024 through the first six months[4](index=4&type=chunk) - The company remains on track to deliver a **record $1.2 billion in global box office in 2025**[4](index=4&type=chunk) - Market share on the summer slate reached **all-time highs** due to an unprecedented run of eight 'Filmed for IMAX' releases[4](index=4&type=chunk) [Key Financial & Operational Highlights](index=1&type=section&id=Key%20Financial%20%26%20Operational%20Highlights) IMAX reported strong Q2 financial results, with Net Income, Adjusted EBITDA, and EPS all up over 25% YoY, driven by network growth and box office gains - **Net Income, Adjusted EBITDA, and EPS increased over 25%** year-over-year[5](index=5&type=chunk) - Network growth momentum with **36 system installations in Q2 (+50% YoY)** and **123 signings year-to-date** (vs 130 in full year 2024)[5](index=5&type=chunk) - Strong YoY growth in **IMAX box office (+41%)** contributed to high incremental profits[5](index=5&type=chunk) - **Net Income margin of 13% (up 760 basis points YoY)** and **Adjusted EBITDA margin of 43% (up 780 basis points YoY)**[5](index=5&type=chunk) - IMAX share of global box office surged **+19% YoY in Q2**, achieving the **highest grossing quarter ever at the North American box office ($143 million)**[5](index=5&type=chunk) Financial Performance [Consolidated Financial Highlights (Q2 & YTD)](index=2&type=section&id=Second%20Quarter%20Financial%20Highlights) IMAX reported robust financial growth for Q2 and YTD 2025, with Total Revenue up 3% YoY to $91.7 million and Net Income surging 139% YoY to $12.2 million | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Q2 YoY Change (%) | YTD 2025 (Millions USD) | YTD 2024 (Millions USD) | YTD YoY Change (%) | | :--------------------------------- | :--------------------- | :--------------------- | :---------------- | :---------------------- | :---------------------- | :---------------- | | Total Revenue | 91.7 | 89.0 | 3 | 178.4 | 168.1 | 6 | | Gross Margin | 53.6 | 43.9 | 22 | 106.8 | 90.8 | 18 | | Net Income | 12.2 | 5.1 | 139 | 20.4 | 10.5 | 94 | | Diluted Net Income Per Share | 0.20 | 0.07 | 186 | 0.25 | 0.13 | 92 | | Total Adjusted EBITDA | 39.1 | 31.0 | 26 | 76.0 | 63.1 | 20 | - **Gross Margin percentage increased by 9.1 basis points in Q2 2025 to 58.5%** and **5.9 basis points YTD to 59.9%**[6](index=6&type=chunk) - **Net Income Margin percentage increased by 7.6 basis points in Q2 2025 to 13.3%** and **5.2 basis points YTD to 11.4%**[6](index=6&type=chunk) - **Total Adjusted EBITDA Margin percentage increased by 7.8 basis points in Q2 2025 to 42.6%** and **5.1 basis points YTD to 42.6%**[6](index=6&type=chunk) [Segment Results](index=3&type=section&id=Second%20Quarter%20Segment%20Results) IMAX's segment results show varied performance, with Content Solutions revenue slightly down but gross box office surging, while Technology Products and Services saw revenue and gross margin growth driven by increased system installations [Content Solutions Segment](index=3&type=section&id=Content%20Solutions%20Segment) Content Solutions revenue decreased 3% YoY to $34.0 million in Q2 2025, but IMAX gross box office increased 41% YoY, expanding gross margin to 66% | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Q2 % Change | YTD 2025 (Millions USD) | YTD 2024 (Millions USD) | YTD % Change | | :---------------- | :--------------------- | :--------------------- | :---------- | :---------------------- | :---------------------- | :----------- | | Revenue | 34.0 | 35.1 | (3%) | 68.2 | 69.1 | (1%) | | Gross Margin | 22.4 | 16.1 | 39% | 46.0 | 38.2 | 20% | | Gross Margin % | 66% | 46% | | 67% | 55% | | - Second quarter 2025 IMAX gross box office increased **41% year-over-year to $281.1 million**[13](index=13&type=chunk) - Global box office market share grew **19% to 3.6%** (on less than 1% of screens)[13](index=13&type=chunk) [Technology Products and Services Segment](index=3&type=section&id=Technology%20Products%20and%20Services%20Segment) Technology Products and Services revenue increased 9% YoY to $55.6 million in Q2 2025, with gross margin up 17%, driven by system installations and network expansion | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | Q2 % Change | YTD 2025 (Millions USD) | YTD 2024 (Millions USD) | YTD % Change | | :---------------- | :--------------------- | :--------------------- | :---------- | :---------------------- | :---------------------- | :----------- | | Revenue | 55.6 | 50.9 | 9% | 106.2 | 94.0 | 13% | | Gross Margin | 30.2 | 25.8 | 17% | 59.3 | 49.4 | 20% | | Gross Margin % | 54% | 51% | | 56% | 52% | | - Installed **36 systems in Q2 2025, up 50%** compared to 24 systems in Q2 2024[13](index=13&type=chunk) - Commercial network increased to **1,750 locations** from 1,705 in the prior year period[13](index=13&type=chunk) - Ended the second quarter with a **backlog of 501 IMAX systems**[13](index=13&type=chunk) [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Total revenues for Q2 2025 increased to $91.684 million, with gross margin significantly improving to $53.602 million and diluted EPS rising to $0.20 | Metric (Thousands USD) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------------------------ | :------ | :------ | :------- | :------- | | Total Revenues | 91,684 | 88,961 | 178,351 | 168,084 | | Gross Margin | 53,602 | 43,927 | 106,778 | 90,816 | | Income from operations | 14,346 | 2,872 | 31,080 | 14,939 | | Net income | 12,235 | 5,073 | 20,385 | 10,493 | | Net income attributable to common shareholders | 11,255 | 3,583 | 13,582 | 6,857 | | Diluted Net income per share | 0.20 | 0.07 | 0.25 | 0.13 | [Condensed Consolidated Balance Sheets](index=10&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, total assets increased to $868.582 million, driven by higher cash, while total liabilities and shareholders' equity also rose | Metric (Thousands USD) | June 30, 2025 | December 31, 2024 | | :------------------------------------ | :------------ | :---------------- | | Cash and cash equivalents | 109,251 | 100,592 | | Total assets | 868,582 | 830,398 | | Total liabilities | 463,509 | 452,183 | | Total shareholders' equity | 404,382 | 377,535 | [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities increased 25% YoY to $30.181 million for H1 2025, with investing activities rising due to higher JRSA investments | Metric (Thousands USD) | YTD 2025 | YTD 2024 | | :------------------------------------ | :------- | :------- | | Net cash provided by operating activities | 30,181 | 24,070 | | Net cash used in investing activities | (22,048) | (15,638) | | Net cash provided by financing activities | 480 | 6,609 | | Cash and cash equivalents, end of period | 109,251 | 91,552 | - Investment in equipment for joint revenue sharing arrangements increased to **$14.666 million in YTD 2025** from $9.757 million in YTD 2024[37](index=37&type=chunk) - Repurchase of common shares by IMAX China totaled **$1.454 million in YTD 2025**, compared to none in YTD 2024[37](index=37&type=chunk) Operational Metrics & Network Growth [System Signings](index=8&type=section&id=System%20Signings) Total IMAX System Signings for Q2 2025 decreased to 28 YoY, but year-to-date signings increased to 123, driven by a rise in Traditional JRSA | System Signings | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :---------------------- | :------ | :------ | :------- | :------- | | Sales Arrangements | 15 | 25 | 34 | 30 | | Traditional JRSA | 13 | 62 | 89 | 65 | | Total IMAX System Signings | 28 | 87 | 123 | 95 | [System Installations](index=8&type=section&id=System%20Installations) Total IMAX System Installations for Q2 2025 increased 50% to 36, and year-to-date installations rose to 57, showing growth in all categories | System Installations | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------------- | :------ | :------ | :------- | :------- | | Sales Arrangements | 13 | 10 | 26 | 15 | | Traditional JRSA | 23 | 14 | 31 | 23 | | Total IMAX System Installations | 36 | 24 | 57 | 39 | [System Backlog & Network Size](index=8&type=section&id=System%20Backlog%20%26%20Network%20Size) As of June 30, 2025, the total system backlog was 501, a slight decrease, while the total system network expanded to 1,821 systems, driven by commercial multiplex growth | Metric | June 30, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------ | | Total System Backlog | 501 | 504 | | Total System Network | 1,821 | 1,780 | | Commercial Multiplex Systems | 1,750 | 1,705 | | Commercial Destination Systems | 11 | 12 | | Institutional Systems | 60 | 63 | Liquidity & Capital Management [Operating Cash Flow and Liquidity](index=4&type=section&id=Operating%20Cash%20Flow%20and%20Liquidity) Net cash provided by operating activities for H1 2025 increased 25% YoY to $30 million, supported by an expanded $375 million credit facility, resulting in $416 million available liquidity - Net cash provided by operating activities for first half 2025 increased **25% year-over-year to $30 million**[14](index=14&type=chunk) - Renewed and expanded senior secured revolving credit facility from **$300 million to $375 million**, including a reduction in borrowing costs[15](index=15&type=chunk) - Available liquidity as of June 30, 2025, was **$416 million** (approximately **$490 million** with the expanded credit facility)[16](index=16&type=chunk) - Total debt, excluding deferred financing costs, was **$280 million** as of June 30, 2025[16](index=16&type=chunk) [Share Count and Capital Return](index=5&type=section&id=Share%20Count%20and%20Capital%20Return) Weighted average diluted shares outstanding increased to 55.2 million in Q2 2025, while IMAX China repurchased $1 million in shares, and the share repurchase program was extended and increased to $500 million | Metric (Millions) | Q2 2025 | Q2 2024 | | :------------------------ | :------ | :------ | | Weighted average basic shares outstanding | 53.8 | 52.6 | | Weighted average diluted shares outstanding | 55.2 | 53.4 | - IMAX China repurchased **1,495,900 common shares** at an average price of HKD 7.56 per share (**$0.96 per share**) for a total of **$1 million in the first half of 2025**[19](index=19&type=chunk) - Share repurchase program extended through **June 30, 2027**, with an increase of approximately **$100 million**, bringing total authority to **$500 million with $251 million available**[20](index=20&type=chunk) Non-GAAP Financial Measures & Reconciliations [Explanation of Non-GAAP Measures](index=14&type=section&id=Explanation%20of%20Non-GAAP%20Measures) This section details IMAX's non-GAAP financial measures, including adjusted net income, EBITDA, and free cash flow, providing supplemental insights into operating trends and credit agreement compliance - Non-GAAP financial measures include **adjusted net income, adjusted EPS, EBITDA, Adjusted EBITDA per Credit Facility, and free cash flow**[43](index=43&type=chunk) - These measures exclude items such as **share-based compensation, investment gains/losses, restructuring charges, and employee retention credits** to provide a comparable view of operating trends and controllable performance[45](index=45&type=chunk)[46](index=46&type=chunk) - Adjusted EBITDA per Credit Facility is used for a comprehensive analysis of operating performance and to assess compliance with Credit Agreement requirements[47](index=47&type=chunk) - Free cash flow is defined as net cash from operating activities less normal recurring capital expenditures, including investments in joint revenue sharing arrangements, property, plant, and equipment, and other intangible assets[50](index=50&type=chunk) [Adjusted EBITDA per Credit Facility](index=16&type=section&id=Adjusted%20EBITDA%20per%20Credit%20Facility) Total Adjusted EBITDA for Q2 2025 increased to $39.058 million, with the margin improving to 42.6%, and for the TTM, it reached $151.917 million with a 41.9% margin | Metric (Thousands USD) | Q2 2025 | Q2 2024 | TTM June 30, 2025 | TTM June 30, 2024 | | :------------------------------------ | :------ | :------ | :---------------- | :---------------- | | Reported net income | 12,235 | 5,073 | 42,594 | 28,823 | | EBITDA | 30,142 | 21,635 | 122,069 | 106,522 | | Total Adjusted EBITDA | 39,058 | 31,001 | 151,917 | 138,828 | | Total Adjusted EBITDA margin | 42.6% | 34.8% | 41.9% | 38.8% | | Adjusted EBITDA per Credit Facility - attributable to common shareholders | 36,686 | 26,850 | 134,513 | 123,067 | [Adjusted Net Income Attributable to Common Shareholders and Adjusted Net Income Per Share](index=18&type=section&id=Adjusted%20Net%20Income%20Attributable%20to%20Common%20Shareholders%20and%20Adjusted%20Net%20Income%20Per%20Share) Adjusted net income attributable to common shareholders for Q2 2025 was $14.607 million ($0.26 per diluted share), a 50% increase, and for H1 2025, it was $21.785 million ($0.40 per diluted share) | Metric (Thousands USD) | Q2 2025 Net Income | Q2 2025 Per Diluted Share | Q2 2024 Net Income | Q2 2024 Per Diluted Share | YTD 2025 Net Income | YTD 2025 Per Diluted Share | YTD 2024 Net Income | YTD 2024 Per Diluted Share | | :------------------------------------ | :----------------- | :------------------------ | :----------------- | :------------------------ | :------------------ | :------------------------- | :------------------ | :------------------------- | | Net income attributable to common shareholders | 11,255 | 0.20 | 3,583 | 0.07 | 13,582 | 0.25 | 6,857 | 0.13 | | Adjusted net income | 14,607 | 0.26 | 9,746 | 0.18 | 21,785 | 0.40 | 17,688 | 0.33 | [Free Cash Flow](index=18&type=section&id=Free%20Cash%20Flow) Free cash flow for H1 2025 was $8.133 million, a slight decrease from H1 2024, despite increased operating cash flow, due to higher JRSA investments | Metric (Thousands USD) | YTD 2025 | YTD 2024 | | :------------------------------------ | :------- | :------- | | Net cash provided by operating activities | 30,181 | 24,070 | | Purchase of property, plant and equipment | (4,006) | (2,690) | | Acquisition of other intangible assets | (3,376) | (3,191) | | Free cash flow before growth CAPEX | 22,799 | 18,189 | | Investment in equipment for joint revenue sharing arrangements | (14,666) | (9,757) | | Free cash flow | 8,133 | 8,432 | Company Information [About IMAX Corporation](index=6&type=section&id=About%20IMAX%20Corporation) IMAX Corporation is an entertainment technology innovator, operating a global network of 1,821 systems across 89 countries, providing immersive experiences and a key theatrical distribution platform - IMAX combines proprietary software, architecture, and equipment to create immersive entertainment experiences[25](index=25&type=chunk) - As of **June 30, 2025**, there were **1,821 IMAX systems operating in 89 countries and territories**[26](index=26&type=chunk) - IMAX China Holding, Inc., a subsidiary, trades on the Hong Kong Stock Exchange under the stock code **'1970'**[26](index=26&type=chunk) [Primary Reporting Groups](index=12&type=section&id=Primary%20Reporting%20Groups) IMAX operates two reportable segments: Content Solutions, focusing on film remastering and distribution, and Technology Products and Services, covering system sales and maintenance - The Company has two reportable segments: **Content Solutions** and **Technology Products and Services**[39](index=39&type=chunk) - Content Solutions primarily includes **digital remastering of films, distribution of large-format documentary films, and film post-production services**[39](index=39&type=chunk) - Technology Products and Services includes the **sale or lease of IMAX Systems, maintenance of IMAX Systems, and ancillary theater business activities**[39](index=39&type=chunk) Additional Information [Investor Resources & Conference Call](index=5&type=section&id=Investor%20Resources%20%26%20Conference%20Call) IMAX provides investor resources and monthly box office results on its website, and hosted a conference call on July 24, 2025, to discuss Q2 2025 financial results - The Company posts quarter-to-date box office results and additional information on the **IMAX Investor Relations website (investors.imax.com)**[22](index=22&type=chunk)[23](index=23&type=chunk) - A conference call was hosted on **July 24, 2025, at 8:30 AM ET** to discuss Q2 2025 financial results, with a webcast available at investors.imax.com[24](index=24&type=chunk) Forward-Looking Statements [Forward-Looking Statements Disclaimer](index=7&type=section&id=Forward-Looking%20Statements%20Disclaimer) This section contains a standard disclaimer for forward-looking statements, based on management's assumptions and subject to inherent risks and uncertainties, with actual results potentially differing due to various factors - This earnings release contains forward-looking statements based on management's assumptions and existing information, involving certain risks and uncertainties[28](index=28&type=chunk) - These statements include projections regarding business and technology strategies, network growth, capital expenditures, brand equity, industry prospects, and future operating and financial results, including **2025 box office guidance**[28](index=28&type=chunk) - Actual results may differ materially due to various factors, such as risks associated with international operations, industry conditions, contractual payment obligations, competition, technological advancements, and economic instability[28](index=28&type=chunk) - The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements[28](index=28&type=chunk)

第二季度调整后每股收益0.26美元，市场预估0.21美元。 第二季度调整后净利润1,460万美元，同比增长51%，市场预估981万美元。 Imax第二季度营收9,170万美元，同比增长3.1%，市场预估9,080万美元。 第二季度毛利率58.5％，上年同期49.4％，市场预估58.6％。 ...

Core Viewpoint - Imax is expected to report flat earnings of $0.18 per share for the quarter ended June 2025, with revenues projected at $92.06 million, reflecting a 3.5% increase from the previous year [3][12]. Earnings Expectations - The upcoming earnings report is anticipated to be released on July 24, and the stock may rise if earnings exceed expectations, while a miss could lead to a decline [2][12]. - The consensus EPS estimate has been revised down by 2.53% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model shows a positive Earnings ESP of +15.75% for Imax, suggesting a higher likelihood of beating the consensus EPS estimate [12]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. Historical Performance - Imax has beaten consensus EPS estimates in three out of the last four quarters, with a notable surprise of +18.18% in the last reported quarter [13][14]. Conclusion - Imax is positioned as a compelling candidate for an earnings beat, but investors should consider other factors influencing stock performance beyond earnings results [15][17].

Industry Trends - Large movie chains are considering strategies to counter the increasing influence of Imax Corp [1]

Business Model - IMAX primarily generates revenue through selling or leasing its theater systems and providing ongoing maintenance services, rather than owning numerous locations [2] - Movie theaters invest in IMAX to charge premium ticket prices, attracting audiences and increasing revenue [3] Financial Performance - IMAX's stock has increased by over 60% in the past 12 months [1] - 2024 was IMAX's second-best year ever in terms of domestic box office performance [4] Content Strategy - IMAX produces its own documentaries, such as Blue Angels, which have achieved notable success [4] - The company digitally remasters old concerts for IMAX, exemplified by Queen Rock Montreal, which became a high-grossing concert film [4][5] - IMAX is expanding into sports coverage [5]

Box Office Performance & Market Trends - IMAX is on pace for a record year at the box office, with analysts anticipating further growth next year [1] - The surge is attributed to high-profile releases like F1 Sinners and the latest Mission Impossible [1] - In IMAX's history, only five films exceeded 20% IMAX box office share with less than 1% of screens, but in the last three months, three films achieved this [3] - Superman's previews showed a strong start [3] - Movies shot with IMAX cameras are driving stronger market share for IMAX [5] Company Growth & Expansion - Signings and installs are growing, contributing to the expansion of IMAX's 1,800 theater network globally [6] - Signings for the first six months of the year almost equaled all of last year, with strong installs [6] Film & Audience Engagement - Eight films this year were not only released in IMAX but also filmed with IMAX cameras [2] - Ryan Cougler's film, shot with IMAX cameras, broadened its audience, demonstrating the appeal of the IMAX experience beyond typical genres [7][9]

Company Performance - IMAX's partnership with Apple for "F1: The Movie" contributed to nearly $300 million in global box office revenue within the first 10 days of release, with over 20% of that revenue coming from IMAX screenings [1][2] - In the U.S. and Canada, IMAX theaters accounted for 25% of all domestic ticket sales for "F1: The Movie," despite IMAX screens representing less than 1% of total movie screens worldwide [2] - CEO Rich Gelfond forecasts a record $1.2 billion in global box office revenue for IMAX in 2025, which would be a 33% increase from 2024 [3] Market Trends - The film industry is witnessing a shift towards premium experiences, with IMAX gaining market share and poised for exponential growth [3] - Post-pandemic, premium brands in various sectors, including concerts and sporting events, have seen increased demand, indicating a consumer preference for distinctive experiences when going out [4] Stock Performance - IMAX stock has seen a significant rally, with shares increasing approximately 60% over the past 12 months [4]

Market Capitalization Summary - Oracle has a market capitalization of 806.88 billion, while Visa stands at 655.99 billion [2] - Procter & Gamble has a market capitalization of 378.02 billion, and ExxonMobil is at 512.70 billion [2] - Mastercard's market capitalization is 470.87 billion, and Bank of America is at 375.11 billion [2] - UnitedHealth has a market capitalization of 308.53 billion, while ASML is at 310.77 billion [2] - Coca-Cola's market capitalization is 295.75 billion, and T-Mobile US Inc is at 273.60 billion [2] Stock Performance - Oracle's stock increased by 0.46 (+0.47%), while Visa's rose by 0.47 (+0.13%) [2] - Procter & Gamble's stock saw a slight increase of 2.68 (+0.48%), while ExxonMobil's stock increased by 1.92 (+1.20%) [2] - Mastercard's stock increased by 1.46 (+1.35%), and Bank of America's stock rose by 3.15 (+2.06%) [2] - UnitedHealth's stock decreased by 11.21 (-1.40%), while ASML's stock increased by 0.93 (+1.31%) [2] - Coca-Cola's stock increased by 14.05 (+4.50%), and T-Mobile US Inc's stock rose by 3.31 (+1.39%) [2] Additional Company Insights - McDonald's has a market capitalization of 212.78 billion, while AT&T is at 207.73 billion [3] - Uber's market capitalization is 192.79 billion, and Verizon's is at 184.08 billion [3] - Caterpillar's market capitalization is 183.87 billion, while Qualcomm is at 174.99 billion [3] - BlackRock has a market capitalization of 163.25 billion, and Citigroup is at 161.13 billion [3] - Boeing's market capitalization is 158.16 billion, while Pfizer is at 142.36 billion [3] Recent Market Movements - Intel's stock increased by 0.45 (+1.99%), while Dell Technologies rose by 0.82 (+0.16%) [4] - Rio Tinto's market capitalization is 746.07 billion, and Newmont is at 654.78 billion [4] - General Motors has a market capitalization of 494.87 billion, while Target is at 472.00 billion [4] - Ford's market capitalization is 451.14 billion, and Valero Energy is at 432.26 billion [4] - Vodafone's market capitalization is 241.45 billion, while Pinterest is at 270.30 billion [5]